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NJ landscapers taking another hit.


General Business Discussions

A place to talk about general business discussions.
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Old 07-12-2006, 02:32 PM
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Higher gas prices, higher taxes.... What's next?

Business owners expect fallout over new state taxes on services - After 29 years in business, Bob Beaton is accustomed to new, state-imposed fees.

Adding sales tax to his landscaping service this fall is just the cost of doing business here, the owner of Beaton Services said Tuesday.

“We've already noticed an impact on the business from gas prices. This is just another nail in our coffin, so to speak,” Beaton said. “We've already cut back on spending, made other changes to the business, and now we have another problem to deal with. That's New Jersey.”

Landscaping companies are just one of the business sectors Trenton lawmakers turned to in balancing the state budget last week.
At Beaton's business, most of his customers will take the tax hit, with the new tax levied on all contracted landscaping.

“In this business, any job over $250 has to be done on a written proposal. That's most of my work,” Beaton said.

A $250 contract — which could be as simple as a season-long weekly lawn trim and maintenance — will cost customers an additional $17.50 in taxes. Contracted landscaping accounts for 75 percent of Beaton's business.

“I'm sure I'm going to take a hit. Every time you add some new cost to a service you lose some business,” he said. “New Jersey is the most restrictive state when it comes to doing business. And it's only going to get worse.”
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Old 07-12-2006, 04:51 PM
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i hope that article is stretching the truth that he has season long contracts for $250!

Sales tax has no effect on my business! it shouldn't have any effect on anyones business. the customer picks it up! its not like they're asking the companys to pay more in taxes.
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